Assets and liabilities

Assets - economic resources. They are items fóf economic value that can be exchanged for cash. Securities and stock are types of assets.

Liabilities -obligation that binds individuals or companies to settle a debt. They are things that you owe to someone else. Mortages and loans are liabilities.

When you buy a house, the house would become your asset. The mortage with which you financed the house is your liability.

In a balance sheet, the value of the assets has to equal the value of the liabilities.